First post on hotcopper? Sorry for the cynicism, but sounded a lot like a PR blurb written by PR company in support of AMI.....in my opinion of course.
So who pulled your chain? 'Salvage things that have gone a little out of whack'.....lol...like playing fiddle as the titanic sinks.
They are running out of money. Their plant is not working properly, so they can't run profitably. A resource downgrade of some note, which means only a 5 year mine life. And they are in major arguments with their major lender over debt levels. And in their own words, the financing issues have to be resolved by August if they are going to dig themselves out of this hole. That's a few issues you can't brush over.
And I'm sorry, but management should shoulder a huge amount of the blame.....for lying in bed with suspect partners, for not getting the right equipment in place to start with, for not making the right changes once production has started, for not managing their capital well enough (get the company profitable and debt down before spending money on exploration), for not getting the JORG resource right, for not letting shareholders know of the full extent of the problems being faced with recoveries, higher maintenance costs, paying for other mills, etc, etc, etc, in a timely manner.
And the one that hurts the most is the overly optimistic outlook by management, right up til today's confessional.
You said it yourself...they seem to have a good resource, they had a blank canvas and butchered it. Now they almost need to throw the baby out with the bath water and start again. Except they don't own the baby any more.
Glencore are doing what they have to. If all of the above were gotten right, debts would be repaid and this debacle wouldn't be occurring. And actually do think they have a legal out in saying they are in default because they can not show they will be able to repay future debts when due. And GC have the $ and resources to peruse this argument.
For mine, AMI could well be back in suspension until there is some certainty over the con note issue and all the issues this raises, as explained well by ozblue.
Feeling reamed.
Milesy
AMI Price at posting:
6.0¢ Sentiment: None Disclosure: Not Held
(20min delay)